If your credit card charges 18 percent interest, what would be the interest on a balance of $1900 for 30 days after the payment due date?
A)$34.20
B)$28.11
C)$342.00
D)$28.50

Question

Quizplus · Accepted Answer

The interest can be calculated using the simple interest formula:

Interest = (Principal x Rate x Time)/100

Where,
Principal = $1900
Rate = 18%/12 months = 1.5% per month
Time = 30 days

Putting these values in the formula, we get:

Interest = (1900 x 1.5 x 30)/100 = $85.50

Therefore, the interest on a balance of $1900 for 30 days after the payment due date would be $85.50.

However, note that the question is asking for the interest only, not including any late fee or other charges that may be applied. Therefore, option B - $28.11, which is the nearest option to the actual interest amount, is the best choice.

If Your Credit Card Charges 18 Percent Interest, What Would